Recycled Bank Account Numbers

CapabilityB

I have had Easy Access Savings accounts with Cynergy Bank now for a number of years. Previously every time I opened a new account, the new account number would just increase by 1 digit, i.e xxxxxxx1, xxxxxxx2,

However, when I opened a new account this time, I was allocated an account number I had previously had that was closed in 2022. It turns out that banks recycle old account numbers.

 I had to wait 48hrs before I was able to make a deposit from my current account, as when I first tried it gave an error message saying it was an incorrect account number. Cynergy Bank advised that this was because they had signed up for the payment verification service (the one that checks your sending money to a legitimate account) and that it can take 48hrs from account opening for the new account number to be recognised on the banking system.

This caused me some confusion and consternation as I thought they'd made a mistake with the account number. If you're reading this I hope it helped avoid any confusion for you.

WillPS

CapabilityB said:

I had to wait 48hrs before I was able to make a deposit from my current account, as when I first tried it gave an error message saying it was an incorrect account number. Cynergy Bank advised that this was because they had signed up for the payment verification service (the one that checks your sending money to a legitimate account) and that it can take 48hrs from account opening for the new account number to be recognised on the banking system.

This part is common - although it's possible for financial institutions to update Confirmation of Payee records immediately some will only update records once overnight - particularly Building Societies but also smaller banks.

The workaround is to override CoP if possible (send a small amount first!) or leave an easy access/instant type product open (or indeed a current account if offered), and transfer the initial deposit to that account, then internally transfer to the new account.